Institutional Investing in Infrastructure

December 1, 2017: Vol. 10, Number 11

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From the Current Issue


Q3/17 first look: Steady as she goes

Infrastructure private equity investment funds reaching a final close in third quarter 2017 added about $7.6 billion to the year’s total, bringing 2017 slightly ahead of 2016’s three-quarters total. This is a good sign for the health of the industry, given that the first quarter was dominated by the closing of the $15.8 billion Global Infrastructure Partners III. In previous years, when a huge amount of capital was committed to one fund, the industry tended to take the rest of the year off, almost as if that one fund had managed to sweep up all available capital.


Infrastructure’s brave new world: How technology and demographics are shaping the future of infrastructure investment

Infrastructure investing is a hot topic right now, and for good reason — the need for global infrastructure capital is significant and growing. For example, in the United States, about $4.6 trillion is required in infrastructure spending to upgrade the country’s roads, bridges, airports, dams and other critical systems, according to the American Society of Civil Engineers, which rates the country’s overall infrastructure a D+. And this need is not exclusive to the United States. The global opportunity for infrastructure is significant.


Infrastructure continues to attract global investors: Governments plan nearly $100 trillion in investment by 2040

International institutional investors have demonstrated strong demand for infrastructure, including record levels of interest in emerging market infrastructure, with 37.5 percent of all investors now active in these growing markets, according to a new survey by the Global Infrastructure Hub. Investors are the most optimistic about the pipeline of projects in emerging markets — 85 percent of investors believe this pipeline will grow. In addition, the Americas was nominated as the key region to watch with strong expectations for the United States and Latin America.


The consultant’s view: Infrastructure investing from the perspective of the consultant

Investment consultants, more so than others in institutional investing, have a unique perspective. They hear from and work with investors such as pension plans, insurance companies and sovereign wealth funds, as well as the investment managers who help these investors manage their capital. Consultants interact with the investment staff of pensions as well as their boards of trustees, and with the managers who make investments and the placement agents who represent their funds. In other words, they see all sides of the relationship between investors and investment managers. If you want good insight into the state of affairs in infrastructure investing, a consultant is a good person to ask.


The case for an infrastructure investment trust: Democratizing investment in roads, bridges and other infrastructure

While there is broad agreement on the need for significant investment in U.S. infrastructure, the question of how to pay for it is more contentious, with different views of how to privately finance public assets. The United States in fact has a long history of successful private market solutions to infrastructure needs, dating back to the creation of our railway system over 150 years ago. More recently, listed structures such as REITs and MLPs, targeting telecommunications and energy pipelines, have proven successful in answering the challenge of stimulating private investment to address infrastructure needs by offering access to the widest possible pool of capital.


Getting up to speed: A look back at the important trends and themes of 2017

The year is almost over, and i3 has covered a lot of territory with our features and news, including the trends and issues institutional investors have discussed and grappled with during the past 12 months. You may not have had time to read the features and trend pieces you wanted to, but with the holidays coming up, there may be a little extra time to catch up. As an i3 subscriber you are always welcome to this information in our archive section at

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